“The basis for this column is the following comment and analysis from Horace Dediu who runs [asymco], a curated, market-intelligence site. This site has some of the best analytical commentary I have seen in many years,” Tim Bajarin writes for PC Magazine.
Dediu figures that every IOS user is worth $150 per year to Apple.
Bajarin reports, “When I went back and looked, I discovered that I had spent about $165 on my iPad (got a lot of books) and $115 on my iPhone for related apps and content last year.”
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“Dediu also believes that Mac users bring in a similar amount of recurring revenue to Apple each year,” Bajarin reports. “In his article, he says that ‘if we assume the number of Mac users reaches 100 million then we can also assume that they will generate about $25 billion in recurring revenues.’ Add his projections of $73.8 billion in iOS revenue and you have a financial juggernaut that nobody in our industry can even come close to matching.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]
I buy an audiobook every week.
give people what they want and they will be happy to spend the money
*DING* Agreement.
I remember buying my old Palm IIIc and going wild looking for apps for it. I did eventually find what I required, such as a decent banking app and word processing/reading app. There was a reasonable community of developers, but NOTHING like what we have for iOS devices, where the apps available is absolutely OVERWHELMING with an incredible number of choices for just about every conceivable purpose. Correspondingly, I have downloaded and BOUGHT an incredible array of apps to the point where I am worried about overflowing the 32 GB of space on my iPod Touch 4. And I love everything I’ve bought.
This is technology that defines the ‘Prime Time’, not merely fitting into the status quo.
It all started with the genius of the iPod. No iPod, then no iTunes Music Store. But once they had that, they have been leveraging it over and over. The App Store is simply the latest piece to a puzzle that has lots of room left to grow.
Why not link to Horace Dediu’s site for the original material, rather thanb some parroting anal-yst?
It’s too goddamn easy to overspend on the iTunes store. A dollar here, a dollar there, pretty soon it all adds up. I try to be as tight fisted as possible but it isn’t easy. Apple has made impulse buying too easy. So what I do is set up two accounts – one for personal use and the other for professional use. I buy store credits for the personal use account so if I blow the credit for that month I know I’m done. Yes, thank you, I know I’m a cheap bastard but we can’t all be corrupt Wall Street bankers with millions to blow.
“we can’t all be corrupt Wall Street bankers with millions to blow.”
…or satisfied Apple users and investors that feed the company that let’s them grow
Apple has tons and tons of unpaid salespeople all over the world …. No other manufacturer of PCs can say this – None ….
Yea, BMW or Lexus or Coach or LL Bean – They all have unpaid salespeople but still not the same as Apple …..
Apple has an “UnderDog” attached to it and as I watch Apple over the last 25 years I can honestly say Steve Jobs had it figured out ten years ahead of the rest of the crowd …. and finally after the down era of the late 1990 and early 2000 Apple is starting to shine BIG TIME and I for one am very proud …..
Proud of both sticking with Apple when I got ridiculed by others in our company for selecting Apple as our computer of choice and proud of what Apple is today ….
Twelve years later our company’s BIGGEST 1998 Window’s Fan is now 100% MAC – YEP NO Windoze for him …..
The best Mac convert is someone who converts themselves after years of looking over your shoulder and wondering why you actually liked your computer and did not stress over malware and such.
I make a point of never pushing the Mac on anyone. Some people just are not ready to learn something new, even if many people find it to be better. Also, they need to try the Mac or iOS device for a while before making the leap.
I met a lady a few months ago who did not like her iPhone 4 – she wanted to go back to her BlackBerry. I strongly suspect that her frustration with the iPhone 4 was that her long nails made it difficult to type or select items on the touchscreen. Does anyone make a conductive nail polish??
So true. Steve had ideas that were far reaching into the future. He has an awareness for what works, plants it and patiently allows it to grow to fruition.
Just to be clear, the author’s example does not add up to $150 in revenue to Apple.
“…$165 on my iPad (got a lot of books) and $115 on my iPhone for related apps and content…” amounts to $280, but less than a third of that ($84) went to Apple. And Apple used part of that money to cover the costs of distribution.
Huge money machine? Certainly. But people writing about financial topics should compare apples to apples, so to speak.
Based on some anecdotal evidence I have, it is clear to me that those who switched to / discovered iTunes Music Store are now spending significantly more (annually) than they had ever spend on physical CDs. I know I do, and many friends I have, who discovered the store in the last 8 years, do as well. And the main reason is value for money. You simply didn’t bother buying CDs because you liked a song you recently heard. For me, there were two reasons: first, the hassle of either going to a physical store (while there still WERE some actual record stores out there), or ordering one online; and the second, more important, that it just was way too expensive to buy a CD in order to get this ONE song I actually liked. Pretty much ALL of my (300+) collection of CDs is classical, jazz and Broadway (i.e. music that doesn’t benefit much from being sold by the track). of my iTunes music purchases, there are MANY individual tracks, which are songs by popular artists. These are a great value at $1, and obscenely expensive at $17 (a price of a CD).
I have no doubt, record labels are making significantly more money (per customer) from iTunes purchasers than from the (still in the majority) physical CD purchasers. Yet, they continue to fight Apple tooth and nail. The morons would prefer to lose business (and slide towards bankruptcy) rather than lose control over customer.
As per usual, it is my humble opinion that the RIAA has done FAR more harm than good. They put an enormous black label on the industry that says “WE HATE OUR CUSTOMERS!!!” In turn, this only inspires pirating of music from the industry that is ‘out to get them’. Shameful.
What’s even worse is that with or without the RIAA, it is the musicians who get screwed most of all by the abusive mob mentality of the parasitic BIG recording companies. What to do about it is a dilemma for every music fan. Gradually, independent music has been growing, one healthy solution to the BIG MEDIA stranglehold. As a result, the likes of nasty old EMI (whom I used to work for) are struggling. Hurray.
I assume Apple prints money with an Apple Style Writer like everyone else.